Milestone reached - More than half monthly payment paying off capital

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JimmyTheWig
JimmyTheWig Posts: 12,199 Forumite
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in Mortgage-free wannabe
Hi,

I wouldn't describe myself as a MfW, more of a Mortgage free Wannabe Wannabe! Would love to be mortgage free, but just have other priorities right now.

But in going through our files last night I realised that, as of about 2 months ago, we've reached the milestone where over half of our monthly mortgage payment is going towards paying off capital and less than half of it is "dead money" on interest.


Next milestone is 50% equity. Should be in about 12 months time.


Hope everyone's doing well with theirs,

Jim
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  • JimmyTheWig
    JimmyTheWig Posts: 12,199 Forumite
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    JimmyTheWig wrote: »
    Next milestone is 50% equity. Should be in about 12 months time.
    How was that for an estimate?
    Just had monthly Zoopla valuation through. Based on that we've now got more than 50% equity. Yay!
    [I think the Zoopla estimate is on the high side, but it's what I'm using!]

    Next milestone is to finish paying off the additional loan (second mortgage) which should happen in about 2 years time.
  • edinburgher
    edinburgher Posts: 13,469 Forumite
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    Well done, you should be able to get very competitive rates if you need to re-mortgage :)
  • JimmyTheWig
    JimmyTheWig Posts: 12,199 Forumite
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    Our current deal runs out in two years time, so I would like to think that by then we'll be under 50% equity by the lender's standards, not just by Zoopla's.
  • edinburgher
    edinburgher Posts: 13,469 Forumite
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    Am I right in thinking that rates don't get much better once you hit 60% LTV?
  • JimmyTheWig
    JimmyTheWig Posts: 12,199 Forumite
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    Oh I see what you mean.
    In which case, yes, we'll certainly be in line for the best deals.
  • JimmyTheWig
    JimmyTheWig Posts: 12,199 Forumite
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    I think I should be kicked off this board!

    We're now in the process of moving house. Significantly increasing our mortgage balance and time it will take to pay off.
  • edinburgher
    edinburgher Posts: 13,469 Forumite
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    JimmyTheWig wrote: »
    I think I should be kicked off this board!

    We're now in the process of moving house. Significantly increasing our mortgage balance and time it will take to pay off.

    There are people on the board who don't even have a mortgage, we'll forgive you :rotfl:
  • dimbo61
    dimbo61 Posts: 13,720 Forumite
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    edited 12 September 2013 at 5:00PM
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    The shame of it
    Going on a board about becoming mortgage free and then taking on more debt.
    Hope the new place is worth it :-)
  • JimmyTheWig
    JimmyTheWig Posts: 12,199 Forumite
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    Oh, it's worth it, dimbo.
    [If we ever get there. The whole process is taking forever!]
  • JimmyTheWig
    JimmyTheWig Posts: 12,199 Forumite
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    Good news...
    Following a reduction in mortgage rate for the largest part of our mortgage, along with some crafty stoozing, I can now report that we're back in the situation of more than half of our monthly repayments are paying off capital.
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